# Dealer Edge Quick Start

> Read GEX structure in 60 seconds - Anchor, Flip, GEX Rating, and price vs anchor for direction. Charm and Pulse complete the workflow.

Source: https://tradeecho.com/docs/features/dealeredge/quick-start (updated 2026-09-25)

Get trading in 5 minutes. This guide is for new users who want to start immediately.

![DealerEdge GEX heatmap with key levels and AI analysis](https://tradeecho.com/docs/img/app/dealeredge.png)

**Session mantra:** Levels first. Direction second. Size last.

For the full **Dealer Edge → Charm → Pulse** workflow, live read template, and daily routine, see [Charm + Pulse Workflow](https://tradeecho.com/docs/features/dealeredge/dealeredge-charm-pulse-workflow).

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## The 60-Second GEX Read

### Step 1: Find the Anchor

Locate the **brightest or largest gamma concentration** on the GEX shelf. This is the primary **magnet** price may gravitate toward.

### Step 2: Compare Price with the Anchor (direction)

- **Price BELOW anchor** - Bullish magnet up toward the anchor
- **Price AT anchor** - Neutral / premium-selling zone
- **Price ABOVE anchor** - Bearish magnet down toward the anchor

### Step 3: Read the GEX Rating (day type, not direction)

The rating describes **how the day may trade** - stable, mixed, or volatile. It does **not** tell you bullish vs bearish by itself.

| Rating | Regime | What it usually means |
|--------|--------|------------------------|
| **4-5** | Positive gamma | Stable, slow, smooth. Pinning and structured breakouts often work best when Anchor and Flip agree. |
| **3** | Neutral / mixed | Reduce size, expect range behavior, avoid forcing a hero trade. |
| **1-2** | Negative gamma | Fast and volatile. Breakouts can run and reversals can snap. Size down. |

### Step 4: Locate the Flip

- **Above the Flip** - Generally the more stable positive-gamma side
- **Below the Flip** - Volatility can expand

Know which side price is on **before** increasing size.

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## Key Distinction

| Signal | Role |
|--------|------|
| **Price vs Anchor** | Directional magnet |
| **GEX Rating** | How aggressively or smoothly that move may trade |

Do not use the rating as a calls-vs-puts shortcut. Direction comes from **price vs Anchor**. The rating sets **environment**.

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## What is GEX?

**GEX (Gamma Exposure)** shows how market makers are positioned across strikes and expirations.

- **Positive gamma** - Dealer hedging tends to **dampen** moves (sell rallies, buy dips)
- **Negative gamma** - Hedging can **amplify** movement and expand volatility

**Result:** Price gravitates toward large positive gamma concentrations (the Anchor).

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## How to Read the Heatmap

- **Each tile** = strike x expiration
- **Brightness** = strength of gamma magnet

### Color Meaning

- **Positive Gamma (Green):** Stabilization - price gravitates to these levels
- **Negative Gamma (Red):** Volatility - price accelerates through these levels

### Key Patterns

- **Vertical Walls:** Strong multi-day support/resistance
- **Horizontal Bands:** Expiration clusters (OpEx magnets)

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## Understanding Key Levels

### Anchor Point

Highest gamma exposure - strongest magnet for price.

### Defense Lines

Secondary levels (roughly 60-80% of anchor strength). Backup support/resistance.

### GEX Flip Point

Where net gamma changes sign.

- **Above flip** - positive gamma - stable, supportive
- **Below flip** - negative gamma - volatility can expand

See [Anchor Points, Defense Lines, and GEX Flip Points](https://tradeecho.com/docs/features/dealeredge/anchor-points-defense-lines) for a deeper dive.

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## Bullish Pinning Playbook (high confluence)

When **all three** align:

1. **Price is below the Anchor** - magnet is above current price
2. **GEX Rating is 4 or 5** - positive gamma, pin-friendly environment
3. **Price is above the Flip** - on the stable side of the regime

Look for structured breakouts or buyable pullbacks with the Anchor as the magnet target. Avoid random mid-range entries.

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## Volatile Breakdown (inverse)

- **Price above the Anchor** - bearish magnet down
- **GEX Rating 1-2** - negative gamma, amplified movement
- **Price below the Flip** - volatility expansion zone

Expect faster moves and sharper reversals. Reduce size and define risk before entry.

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## Expirations and sharing

The Pro and Greeks views have an **expiration picker**, so you can read any listed expiry instead of only the nearest one. The page link keeps the ticker and view, so refreshing or sharing the link reopens the same board.

For a what-if on implied volatility, open the [Vol scenario](https://tradeecho.com/docs/features/dealeredge/vol-scenario) card in Focus mode.

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## Beyond GEX: Charm and Pulse

GEX maps the dealer magnet and volatility regime. **Charm** maps time-decay concentration - read it by **location relative to price**, not color alone. See [Charm Lens](https://tradeecho.com/docs/features/dealeredge/charm-lens).

**Pulse** puts the same GEX and Charm Drift levels on the live chart. See [Pulse Quick Start](https://tradeecho.com/docs/features/pulse/quick-start) and [Charm + Pulse Workflow](https://tradeecho.com/docs/features/dealeredge/dealeredge-charm-pulse-workflow).

The heatmap has four lenses on one grid: **GEX**, **Vol**, **VEX**, and **Charm**. [Net Flow](https://tradeecho.com/docs/features/dealeredge/net-flow) adds session flow pressure. Alerts include **Anchor Approach**, **Charm Stack at Anchor**, and **Flip Cross**.

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## Common Mistakes to Avoid

- **Using GEX Rating for direction** - Rating = day type. Anchor = direction.
- **Fighting the Anchor** - Price gravitates toward the anchor
- **Selling premium in 1-2/5** - Volatile tape favors defined-risk directional trades, not short premium
- **Reading Charm by color only** - Always note whether the concentration is **above or below** current price
- **Misreading positive gamma** - Positive gamma = stability, not automatic bullishness

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## Quick Reference

### Direction (price vs Anchor)

- **Below** - bullish magnet up
- **At** - neutral / premium-selling zone
- **Above** - bearish magnet down

### Day type (GEX Rating)

- **4-5** - stable | slow | smooth
- **3** - mixed | range
- **1-2** - violent | fast | volatile

### Checklist

- [ ] Found Anchor and Flip
- [ ] Noted price vs Anchor (direction)
- [ ] Noted GEX Rating (day type)
- [ ] Switched to Charm for 0DTE / front-week reads
- [ ] Confirmed levels on Pulse before entry

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*Trade Echo docs are for product education only - not financial advice.*